- S&P 500 tracking exchange traded funds continue to slide further in pre-market trading activity as market volatility levels increase with the S&P VIX Index (VIX) crossing above the 30 handle.
- SPDR S&P 500 Trust ETF (NYSEARCA:SPY), Vanguard S&P 500 ETF (NYSEARCA:VOO), and the iShares Core S&P 500 ETF (NYSEARCA:IVV) all trade in the red as each fund is -1% in pre-market action.
- Moreover, to start the week, the benchmark S&P 500 is now off 8.7% from its record high and trading below the 200-day moving average.
- Fueling the downward momentum is the rise in volatility levels as investors remain in a cautious stance in what appears to be a risk-off day of trading.
- The VIX has increased to its highest levels since Nov. of 2020 as the index touched the 37.95 handle earlier today. It has since come down to 33.92. The rise in volatility has directly affected volatility-based ETFs and ETNs.
- Below are two volatility funds that use futures contracts that are experiencing a positive push higher.
- Short-term funds and their daily price action: ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY) +13.8% and the ProShares VIX Short-Term Futures ETF (BATS:VIXY) +5.6%.
- The S&P 500 has now closed to the downside in four straight sessions and looks to be off to another tough day as the index is now near a three-month trading low.
Recommended For You
More Trending News
See More »